The Bitcoin price is being closely watched as the market anticipates a potential rate cut by the Federal Reserve, with a 74.5% possibility according to the CME FedWatch Tool. The anticipated rate cut, if it happens, could lower the federal fund's target rate and is seen as a dovish signal that would likely bolster the price of Bitcoin and altcoins. This follows months of inflation data suggesting price stabilization. Bitcoin's price has seen a pullback after hitting resistance near $100,000, but market participants are awaiting a catalyst to push it higher. A dovish Fed move could provide the necessary momentum, as rate cuts reduce borrowing costs and increase liquidity, conditions historically favorable for Bitcoin. Other factors supporting Bitcoin's price include institutional interest, limited supply due to the halving, and optimism surrounding pro-crypto policies from President-elect Donald Trump. However, unexpected signs of persistent inflation could temper the Fed's dovish pivot and dampen Bitcoin's bullish outlook.



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